SmallGovCon Week In Review: September 28 – October 2, 2015

The fiscal year has ended and a potential government shutdown was avoided…for now. As we jump into October, we look forward to cooler temperatures, football games, and fall festivities. Of course we haven’t forgotten that it is Friday, which means that it is time for the latest and greatest in government contracting.

This week’s SmallGovCon Week In Review includes stories on the end of the fiscal year, a hefty settlement for improper inflation of labor hours, some tips on improving your contracting experience and more.

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Kingdomware Shocker: VA Abandons Goal-Setting Argument

In a stunning development in the Kingdomware SDVOSB/VOSB Supreme Court case, the Government has abandoned the argument that the statutory preference for veteran-owned companies applies only if the VA has not met its SDVOSB or VOSB contracting goals.

Although this argument was hotly debated, it was successful both at the Court of Federal Claims and again at the Federal Circuit.  But now, just weeks away from oral arguments, the Government’s Supreme Court brief jettisons the Government’s own previously successful argument in favor of an entirely different rationale for refusing to honor the statutory SDVOSB and VOSB preferences.

The last-minute, wholesale substitution of arguments doesn’t say much for the Government’s confidence in its case. And on the merits, the Government’s new argument is no better than the one it has abruptly abandoned.

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GAO: Agency Properly Refused SBA COC Time Extension

A contracting agency is not required withhold a contract award so that the SBA has more time to process a Certificate of Competency, even when the SBA itself asks for an extension.

The Government Accountability Office decided recently that it was reasonable for an agency to move ahead with an award while the SBA was still in the process of determining the competency of a small business that lost out on the contract.

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Offeror’s Winning Bid Of $0.00 Was Acceptable, Says GAO

Under certain circumstances, the winning bidder on a fixed-price contract may offer $0.00.

In a recent decision, LCPtracker, Inc.; eMars, Inc., B-410752.3 et al (Sept. 3, 2015), the GAO held an offeror submitting a zero-dollar offer (that is, an offer for $0.00) was eligible to receive a fixed-price contract because both the Government and the contractor would receive benefits under the contract.

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GAO: Rule Of Two Analysis Not Required For Exercise Of “In Scope” Options

The Small Business Act envisions that small businesses will be awarded a “fair proportion” of government contracts. To meet this goal, the FAR instructs agencies to set aside for small businesses acquisitions over $150,000 if there is a reasonable expectation that offers will be received from at least two responsible small businesses, at fair market prices.

While the Rule of Two is powerful, it does not extend to all procurement actions. A recent GAO case illustrates an important exception to the Rule of Two. In Walker Development & Trading Group—Reconsideration, B-411246.2 (Sept. 14, 2015), the GAO held that an agency need not conduct a Rule of Two analysis before exercising an option in accordance with the terms of an existing contract.

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Nonmanufacturer Rule: Large Manufacturers OK’d For Certain Simplified Acquisitions

In a small business set-aside simplified acquisition of $25,000 or less, small business offerors may propose using large business manufacturers while still complying with the requirements of the nonmanufacturer rule.

In a recent decision, the SBA’s Office of Hearings and Appeals held that an apparent ambiguity contained in the nonmanufacturer regulation for certain simplified acquisitions should be resolved in favor of exempting offerors from the requirement that the manufacturer be a small business concern.

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